Market Watch: Bilateral Trade Agreement Between India and US Finalized

India’s trade deal with the US has sparked intense political debate at home. The opposition criticizes the government, arguing that India’s interests were overlooked, particularly regarding strategic autonomy and energy imports. While the US announced a reduction in tariffs from 50% to 18%, details of the agreement remain undisclosed, and India has not officially confirmed claims about stopping oil imports from Russia and Iran or sourcing from Venezuela. Experts note that India’s agriculture and dairy sectors remain red lines, and any claims of opening these markets are exaggerated. Analysts highlight that India’s growing economic clout, fast-tracked FTAs with the EU, UK, and New Zealand, and strengthened global position compelled the US to reduce tariffs. The deal is seen as a “mini or medium trade agreement” rather than a full FTA, offering relief to exporters while preserving India’s strategic autonomy. Observers credit India’s firm stance and diplomatic leverage for forcing the US to compromise, ending the tariff tension.